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Concluding Remarks

MANAGING THE GLOBAL SUPPLY CHAIN SUCCESSFULLY WILL BE A DETERMINING FACTOR OF HOW WELL A COMPANY DOES IN ITS OVERALL BUSINESS MODEL IN THE NEW MILLENNIUM

International trade will continue to grow, and corporate executives will be required to master the skill sets necessary to keep their companies out of trouble while forging ahead in growth and profits.

International business presents both opportunities and challenges. Those executives who best manage risk and cost and can navigate the complexity of all the challenges outlined in this book will be in the best positions to succeed for themselves and their organizations.

THE EVENTS OF SEPTEMBER 11, 2001 CHANGED OUR LIVES FOREVER

Having been in international business for almost thirty years, I have no witness to any one single event that has so greatly affected our own personal family lives, but for the focus of this book, it has affected our lives that interface in global trade.

Before 9/11, managing the import/export supply chain was complicated, convoluted, and difficult. It required an intense set of skill sets. The formula for success was simple and three pronged and can be utilized as a current set of guidelines.

Recognizing the impact of 9/11 and its role in global supply chains, and thereby successfully navigating those challenges, will be a critical factor in the decisions managers need to make to drive risk and cost from the supply chain and allow in business process improvements, which have been outlined in the body and the appendix of this book.

Though the event is over fifteen years old, the residual impact is lasting and still molding how authorities implement and enact regulatory compliance for both importers and exporters.

MASTER THE SKILL SETS

Master the skill sets and you will succeed with greater ease and comfort. This book pays attention to providing every single skill set an import/export supply chain executive may need and how to best master it.

One of the most important skill sets is learning not to cut corners and dotting the i‘s and crossing the t‘s. Failure to do so will cause havoc in the supply chain and produce potential insurmountable losses.

CONNECTING THE DOTS OF ALL THE SUPPLY CHAIN RESPONSIBILITIES

What we mean is that like links in a chain, all of the “issues and functions” must work in concert. Having one or several things right is not sufficient; they must all work. Documentation, freight, clearance, insurance, and finance are some of the “things” or skill sets of import/export supply chains. If the documentation is done correctly and the freight is handled properly but there is loss or damaged goods and someone forgot to insure the shipment, the result will be financial loss and a dissatisfied customer. Having two parts of the three correct results in little value.

If the freight arrives in good condition but the exporter is unable to get paid, then all the prior steps were for naught. So, at the end of the day, the importer/exporter must align all of the operational steps and make sure they are in order to best assure success.

A theme throughout this book is “mitigate the risks and maximize the opportunities.” In other words, one can mitigate the risks by making sure they do all the things necessary to make sure the import/export transaction goes well. To make sure all goes well, one must master the skill sets and assure “all” the functions are done right.

INTEGRATE COMPLIANCE AND SECURITY INTO YOUR GLOBAL SUPPLY CHAIN

If you read this book, by now you certainly know that post-9/11 changed how freight moves from and to the United States. You know that there are significant convolutions of regulatory mandates that are still evolving, as we write this, that come into play in the supply chain decisions.

The world is a very competitive market. Those companies that survive and prosper are those that manage the most cost-effective supply chains and have opened up the entire globe to new suppliers and markets. The key ingredient of being competitive post-9/11 is to keep the costs of compliance and security in balance. The key to keeping these in balance is to be proactive and upfront rather than reactionary. Preparation, planning, and concise budgeting will help to assure competitive “landed costs” and open trade lanes.

Those companies that do the following in developing a “Global Policy” will be the most competitive in their global supply chains:

1.Learn the new regulations.

2.Obtain senior management commitment.

3.Train and educate the staff.

4.Create functional standard operating procedures.

5.Work to achieve high levels of compliance and security.

6.Manage the supply chain cost-effectively.

7.Know all of your options.

8.Think outside of the box; sometimes the solution is not where you expect it, or maybe more “stones” have to be turned over.

9.Be proactive and not reactive: plan, prepare, and budget.

10.Develop resources.

11.Assign responsibility and accountability.

12.Utilize technology to manage trade compliance with greater effectiveness.

13.Join trade associations that network trade compliance initiatives and allow friendly business competitors to interface and exchange to their mutual benefit.

14.Establish systems of accountability and responsibility between all company personnel who are stakeholders in the global supply chain and share common trade compliance concerns.

We cannot emphasize enough the importance and critical nature of developing a “Global Policy” that incorporates these factors, which this book and author advocate comprehensively, concisely, and passionately.